Cuomo is stepping out…

Of his jurisdiction. And I don’t just mean because he has subpoenaed schools outside of NY (that can be justified). I don’t claim to be an expert in financial matters but I have looked into the credit card practices since my employer has more alumni with branded cards than any other academic institution. The practice is legal, that seems to be certain. But Cuoma seems to be saying that just the cards being offered somehow encourages students and alumni to take on unnecessary debt. That may be a valid ethical question, but is it a legal one? I don’t think so. (And I am someone who believes we should educate our students, require honesty in advertising, and let them make their own decisions! They are adults, after all.)

One of the practices taking place at colleges that have attracted Mr. Cuomo’s attention involves a type of credit cards, known as affinity cards, that bear the logos of colleges, charities, or other organizations. One industry study estimated that by the end of 2006, consumers carried more than 320-million co-branded and affinity credit cards and used them for $849-billion worth of transactions.

Such credit-card partnerships are common with either colleges or their alumni associations. Mr. Cuomo and other critics have questioned whether such arrangements will encourage students to take on more debt than necessary, or encourage colleges to recommend lenders on the basis of financial relationships that aren’t in their students’ best interests.